WDAY.com

WDAZ: Your Home Team

Published February 12, 2014, 10:06 AM

Higher ed leaders to testify on lab UND bought

State higher education officials will testify to a legislative committee today regarding last year's sale of a research facility to UND.

By: John Hageman, Grand Forks Herald

State higher education officials will testify to a legislative committee today regarding last year's sale of a research facility to UND.

The Research, Enterprise and Commercialization building, owned by the UND Research Foundation, was sold to the university for $9.8 million.

UND officials had asked lawmakers early last year to let it purchase REAC. Instead, the Legislature passed a law allowing the State Board of Higher Education to negotiate the building's sale.

Sen. Ray Holmberg, R-Grand Forks, said it appears the board was not involved in negotiating the sale, and the intent of the law was not followed.

Today's hearing will be before the Government Finance Committee. According to the meeting agenda, the hearing will touch on broader issues regarding the financing and occupancy of REAC.

UND President Robert Kelley, State Board of Higher Education President Kirsten Diedrich and Murray Sagsveen, the North Dakota University System's chief of staff will testify today, according to NDUS spokeswoman Linda Donlin.

Questions

REAC was built at a cost of $16 million, with help coming from state, local and federal sources. Opened in 2009 with labs, offices and conference rooms for businesses and organizations involved in research, it's meant to be a "technology accelerator."

By early 2013, UND was saying it would make more sense if the university ran the building.

"The ability to own and manage this facility within UND will create operating efficiencies, reduce costs, insure ongoing stability in the operations of the facility, provide more seamless access and better enable partnerships," Alice Brekke, UND's vice president for finance and operations, testified before a Senate committee in February 2013.

The sale between UND and the Research Foundation took place in September.

Last month, NDUS Interim Chancellor Larry Skogen told Prairie Public Radio that "the state board had, in January 2013, delegated the authority to the chancellor to approve the process and any agreement UND came up with."

"We have dotted all the 'Is' and crossed all the 'Ts' on that," he said.

Holmberg, who chairs the Interim Legislative Management Committee, shot back in an email to Government Finance Committee members, stating that Skogen "overlooks and ignores the facts."

He directed the committee to look into the sale earlier this year.

Tags: